Definition: Age-efficiency profile
OECD terminology
"Measuring Capital" Manual 2009
Describes an asset’s productive capacity over its service life. The index is set to equal one for a new asset and becomes zero when the asset has reached the end of its service life. The decline in productive capacity is a result of wear and tear of the asset.
"Measuring Capital" Manual 2001
The age-efficiency profile of an asset describes the change (usually the decline) in the efficiency of an asset as it ages. Efficiency in this context refers to the asset's ability to produce a quantity of capital services for a given amount of inputs.
"Measuring Productivity" Manual
Age-efficiency profile shows the loss in productive capacity of a capital good over its life time, or the rate at which the physical contribution of a particular asset declines over time, as an effect of wear and tear.
Source:
Organisation for Economic Co-operation and Development (OECD), "Measuring Capital - OECD Manual: Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services", Annex 1: Glossary of technical terms used in the Manual, Paris, 2001
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